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ISHS Acta Horticulturae 895: III International Symposium on Improving the Performance of Supply Chains in the Transitional Economies

LINKING SMALL-SCALE AFRICAN GROWERS TO VALUE MARKETS: DEVELOPMENT OF A CO-OWNED PRODUCE MARKETING ORGANISATION AS THE STANDARDS HOLDER

Authors:   N. Munyeche, S. Story, R.N. Baines, W.P. Davies
Keywords:   small-scale producers, value chains, private standards, market access
DOI:   10.17660/ActaHortic.2011.895.23
Abstract:
International experience has shown that growers who grow and market horti-cultural products earn more income than cereal or pulse growers. However, for this potential to be realised, these growers need ready and efficient access to markets. In the case of small-scale growers, this is particularly difficult. Barriers include size and scale of operation, as well as insufficient knowledge of grades and standards and related technical skills. Appropriate procurement and business models need to evolve to improve smallholder growers’ access to markets. Within domestic markets in Zambia, initiatives have been developed to market agricultural products via producer marketing organisations (PMO) such as farmer cooperatives. The co-owned PMO model proposed in this study operates as a company limited by guarantee and has been extended to allow for co-ownership by actors closer to the end market as well as by smallholder growers. Such a PMO was established in 2007 with the aim of initially developing the Zambian export market for baby corn. The export crop was changed to avocados and potentially melons due to changes in global markets. The institutional arrangements for this PMO are intended to ensure that product and production process quality standards are met through the required certification, extension, finance and the provision of transparent market information. This paper discusses the evolution and implementation of this model from initial concept to current activities.

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